02 15-14 fuji heavy-results_q3_2013-3

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Presentation of Business Resultsfor the 3rd quarter of FYE 2013

Fuji Heavy Industries Ltd.February 4, 2014


Financial results for the 3rd quarter (9 months) of FYE March 2014

Financial projections full year for the FYE March 2014

Due to healthy sales of Forester in Japan and North America, consolidated automobile sales set an all-time records of 593k units for a fiscal 9 months period.

In addition to gain on currency exchange, increase in sales volume, improvement in product mix and cost reduction brought all time record high in net sales and all profits for a fiscal 9 months period.

Plan to record-setting performance of consolidated automobile units, net sales and all profits

Due to improvement of sales volume, product mix in Japan and US and revision of assumed currency exchange rate, full year projections of net sales and all profits to be increased compared to previous projections.

Summary

¥221.0bil.(+¥101.4bil.)

Net income

Actual results(YoY)

829.3k(+104.8k)

¥294.0bil.(+¥193.4bil.)

¥310.0bil.(+¥189.6bil.)

¥2,380.0bil.(+¥467.0bil.)

Consolidated automobile unitsOrdinary incomeOperating incomeNet sales

¥181.5bil.(+¥128.4bil.)

Net income

Actual results(YoY)

593.4k(+66.8k)

¥221.4bil.(+¥158.0bil.)

¥233.4bil.(+160.0bil.)

¥1,708.5bil.(+¥337.8bil.)

Consolidated automobile unitsOrdinary incomeOperating incomeNet sales


Business results for the 3rd quarter (9 months)

of FYE March 2013

Business results for the 3rd quarter (9 months)Business results for the 3rd quarter (9 months)

of FYE March 2013of FYE March 2013


+54.5469.5415.1Overseas total

-10.729.640.3China+1.429.628.3Australia

+3.627.223.6Canada+67.0326.4259.4U.S.

+12.3123.9111.5Domestic total+2.337.034.7Minicars

Actual Results9 monthsFYE 2013


Increase / Decrease

Passenger cars 76.9 86.9 +10.0

Russia 13.3 9.5 -3.8Europe 34.9 23.5 -11.4

Others 15.3 23.8 +8.4

Total 526.6 593.4 +66.8

9 months : Consolidated Automobile Units

* China figures are consolidated on the calendar year basis from Jan. to Sep.

（Thousand Units）


+¥19/US$¥98/US$¥80/US$FHI exchange rate

+1,5802,214634Ordinary income

+1,6002,334734Operating income

+3,41312,2978,884Overseas

-354,7884,823Domestic



Increase / Decrease

Net sales 13,707 17,085 +3,378

Income before taxes and minority interests

617 2,671 +2,054

Net income 531 1,815 +1,284

9 months : Consolidated Income Statements （100 Million Yen）


734

2,334

Improvementof sales

volume &mixture and

others+195

Gain oncurrencyexchange

+1,428

Cost reduction+194

Increase ofSG&A

expensesand others-137

Increase of R&D expenses

-80

+160.0 billion

US$ : +1,271EURO : +35CA$ : +71CNY : -1Currency exchange adjustment : +52

Actual resultsOperating income

9 monthsFYE March 2013


9 monthsFYE March 2014

9 months : Analysis of Increase and Decreasein Operating Income Changes (consolidated)

Domestic : Increase of sales volume & deterioration of mixtureOverseas : Improvement of sales volume & mixture

・Increase of fixed cost and SG&A expenses

・Decrease of warranty claims

FHI : +159SIA : +35

（100 Million Yen）


2012年3月期 2013年3月期 2012年3月期 2013年3月期

+25.5 ％ +226.6 ％

Net sales to be increased due to increase of sales in Japan and US and gain on currency.

Operating income to be increased due to increase of sales unitsand cost reduction offset increase of SG&A costs.

12,71715,962

674

2,203

9 months : Automobile Segment (Consolidated)

Net sales Operating income

9 monthsFYE2013

9 monthsFYE2014

9 monthsFYE2013

9 monthsFYE2014



2012年3月期 2013年3月期 2012年3月期 2013年3月期

+33.0 ％ +180.3 ％

Increase in both sales and operating income. Increase in both Defense and Commercial Sectors with gain on

currency exchange.

38

106636

846


9 monthsFYE2013

9 monthsFYE2014

9 monthsFYE2013

9 monthsFYE2014

9 months : Aerospace Segment (Consolidated) （100 Million Yen）


2012年3月期 2013年3月期2012年3月期 2013年3月期

-1.5 ％ -32.9 ％

Decrease in both net sales and operating income. Despite increase of engines sales in Japan and Asia,

sales decrease in engines for leisure vehicles for North America.

224 220

3

2


9 monthsFYE2013

9 monthsFYE2014

9 monthsFYE2013

9 monthsFYE2014

9 months : Industrial Products Segment (Consolidated) （100 Million Yen）


-1-17-16Loss on sales and retirement of noncurrent assets

+4684725Gain on sales of investment securities

-17-6

-99

-12

-79-8


4571

-119

-12

-1081


Increase / Decrease

+474Total extraordinary income & loss

+7Other

-20Total non-operating income & expenses

+0Other

-28FOREX effects

+8Financial revenue and expenditure

9 months : Non-Operating Income & Expenses and Extraordinary Income & Loss (Consolidated)



+1,6587,6125,954Shareholder’s equity

+1,5814,5953,014Retained earnings

+2,12411,5659,440Current assets

-396,2956,334Noncurrent assets

+1,6757,6435,968Net assets

+4.942.6％37.7％Shareholder’s equity to total assets

-3122,7603,072Interest bearing debts

As of Mar. 2013 As of Dec. 2013 Increase / Decrease

Total assets 15,775 17,859 +2,085

D/E ratio 0.52 0.36 -0.15

Consolidated Balance Sheets（100 Million Yen）


+7093,2892,581Cash and cash equivalents at beginning of period

-2121213Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation

-4,9823,046Cash and cash equivalents at end of period

+1,4381,691252Net increase (Decrease) in cash and cash equivalents

+345-121-467Net cash provided by (used in) investing activities

+1,4472,094646Free cash flows

+9914545Effect of exchange rate change on cash and cash equivalents

-108-547-439Net cash provided by (used in)financing activities



Increase / Decrease

Net cash provided by (used in) operating activities 1,113 2,215 +1,102

9 months : Consolidated Statement of Cash Flows（100 Million Yen）


-12.0119.7131.7Subaru production (Thousand units)

SIAActual Results

9 monthsFYE 2013


Increase / Decrease

Net sales 3,021 2,817 -204Operating income 30 162 +132Net income 19 102 +83

+76.1331.0254.9Retail sales (Thousand units)

SOAActual Results

9 monthsFYE 2013


Increase / Decrease

Net sales 6,385 8,115 +1,730Operating income 130 199 +69Net income 85 123 +38

（Million US$）

9 months : Operating Results of Subsidiaries in U.S.


Outlook for the term Ending March 2014Outlook for the term Ending March 2014Outlook for the term Ending March 2014



-5.444.850.2China

+1.039.138.1Australia

+3.436.032.6Canada

+82.3439.8357.6U.S.+25.7188.8163.1Domestic total

+3.453.850.4Minicars

Actual resultsFYE 2013

PlanFYE 2014

Increase /Decrease


Russia 14.7 15.4 +0.7Europe 46.4 31.9 -14.5

Others 21.7 33.4 +11.7

Total 724.5 829.3 +104.8

Full Year : Consolidated Automobile Sales Plan

* China figures are consolidated on the calendar year basis from Jan. to Dec.




+1,9342,9401,006Ordinary income

+1,8963,1001,204Operating income

+4,89317,30512,411Overseas

-2236,4956,718Domestic

Actual resultsFYE 2013

PlanFYE 2014

Increase /Decrease

Net sales 19,130 23,800 +4,670


931 3,331 +2,400

Net income 1,196 2,210 +1,014

Full Year : Consolidated Operating Plan（100 Million Yen）


1,204

3,100

Improvementof sales

volume &mixture and

others+484

Gain oncurrency

exchange+1,620

Cost reduction +210

Increase ofSG&A


Increase of R&D expenses-109

+189.6 billion

Analysis of Increase and Decrease inOperating Income Changes (consolidated)

Actual resultsOperating incomeFYE March 2013

PlanOperating incomeFYE March 2014

Domestic : Improvement of sales volume & mixtureOverseas : Improvement of sales volume & mixture

Increase of fixed cost and SG&A expenses Decrease of warranty claims

US$ : +1,497EURO : +48CA$ : +77CNY : +7Currency exchangeadjustment : -9

FHI : +172SIA : +38



-17.7163.5181.2Subaru production (Thousand units)

SIA Actual resultsFYE 2013

PlanFYE 2014

Increase /Decrease

Net sales 4,158 3,839 -319Operating income 71 257 +186Net income 46 155 +109

+88.0435.1347.1Retail sales (Thousand units)

SOA Actual resultsFYE 2013

PlanFYE 2014

Increase /Decrease

Net sales 8,805 10,935 +2,130Operating income 133 175 +42Net income 97 109 +12

Full Year : Operating Plan of Subsidiaries in U.S.（Million US$）


FYE2013 FYE2014

2,760

433

394

412

Actual results9 months

3,236

353

389

484

Actual results9 months

-9550559Depreciation

-3722,7003,072Interest bearing debt

Actual ResultsFull year

(a)

PlanFull year

(b)

Increase / Decrease(b) - (a)

Capex 702 720 +18

R&D 491 600 +109

Capex / Depreciation / R&D / Interest bearing debt



Appendix (1)・Segment information (by Business / Geographic)・Overseas net sales・Non-consolidated automobile sales・3rd quarter (3 months), consolidated statements income・2nd half (6 months), consolidated statements income・ Full year, Previous plan vs. revised plan

Appendix (1)Appendix (1)・・Segment information Segment information (by Business / Geographic)(by Business / Geographic)・・Overseas net salesOverseas net sales・・NonNon--consolidated automobile salesconsolidated automobile sales・・3rd quarter 3rd quarter (3 months)(3 months), consolidated statements income, consolidated statements income・・2nd half 2nd half (6 months)(6 months), consolidated statements income, consolidated statements income・・ Full year, Previous plan vs. revised planFull year, Previous plan vs. revised plan


+1,6002,334734+3,37817,08513,707Total

Operating incomeNet sales

-73

-3

+210

+3,245

Increase /

Decrease

56

220

846

15,962

Actual Results

9 monthsFYE 2014

130

224

636

12,717

Actual Results

9 monthsFYE 2013

4

15

3

38

674

Actual Results

9 monthsFYE 2013

4

18

2

106

2,203

Actual Results

9 monthsFYE 2014

Increase /

Decrease

+1Elimination and corporate

+3Others

-1Industrial products

+68Aerospace

+1,528Automobile

9 months : Net Sales and Operating Incomeby Business Segment (consolidated)



+1,6002,334734+3,37817,08513,707Total

Operating incomeNet sales

-86

+3,225

+238

Increase /

Decrease

1,163

9,084

6,839

Actual Results

9 monthsFYE 2014

1,248

5,859

6,600

Actual Results

9 monthsFYE 2013

-6

-2

146

595

Actual Results

9 monthsFYE 2013

-133

-5

434

2,038

Actual Results

9 monthsFYE 2014

Increase /

Decrease

-128Elimination andcorporate

-3Other

+288North America

+1,443Japan

9 months : Consolidated Operating Income by Geographic Area



+3,41312,2978,884Total

904

916

837

9,640

-124960Europe



Increase / Decrease

North America 6,273 +3,367

Asia 880 +36

Other 771 +133

9 months : Overseas Net Sales（100 Million Yen）


+87.0371.6284.6Number of vehicles exported

+87.3627.2539.9Total

-11.6124.3136.0Components for overseas production


+6.590.984.5Passenger cars

+11.8131.2119.4Domestic sales



Increase / Decrease

Domestic production 425.6 482.3 +56.7

9 months : Non-Consolidated Automobiles Units

* Domestic Production figures include Toyota 86.




-3.110.613.7China+2.18.36.2Australia

+1.28.57.3Canada+22.4117.595.0U.S.-3.036.539.6Domestic total+3.311.48.1Minicars

Actual ResultsQ3

FYE 2013

Actual ResultsQ3

FYE 2014

Increase / Decrease

Passenger cars 31.5 25.1 -6.4

Russia 2.2 2.7 +0.5Europe 9.5 8.1 -1.4

Others 4.7 8.4 +3.8

Total 178.2 200.8 +22.6

3rd Quarter : Consolidated Automobile Units

* China figures are consolidated on the calendar year basis from Jul. to Oct.




+571752181Ordinary income

+525827301Operating income

+1,3454,3473,002Overseas

-2431,4821,725Domestic

Actual ResultsQ3

FYE 2013

Actual ResultsQ3

FYE 2014

Increase / Decrease

Net sales 4,727 5,829 +1,102


159 1,218 +1,059

Net income 127 817 +690

3rd Quarter : Consolidated Income Statements（100 Million Yen）


301

827

Deteriorationof sales

volume &mixture and

others-18

Gain oncurrency

exchange+556

Cost reduction+59

Increase ofSG&A

expensesand others

-41


-30

+52.5 billion

US$ : +512EURO : +15CA$ : +22CNY : -1Currency exchangeadjustment : +7

3rd Quarter : Analysis of Increase and Decrease inOperating Income Changes (consolidated)


3rd quarterFYE March 2013

PlanOperating income

3rd quarterFYE March 2014

Domestic : Deterioration of sales volume & mixtureOverseas : Improvement of sales volume & mixture

Decrease of fixed cost Increase of SG&A expensesand warranty claims

FHI : +43SIA : +16




+2.325.923.6China+1.817.816.1Australia

+1.017.316.3Canada+37.7230.9193.2U.S.

+10.3101.591.1Domestic total+4.428.223.8Minicars

Actual Results2nd HalfFYE 2013

Plan2nd HalfFYE 2014

Increase / Decrease


Russia 3.6 8.6 +5.0Europe 21.0 16.5 -4.5

Others 11.0 18.1 +7.0

Total 376.0 436.6 +60.6

2nd Half : Consolidated Automobile Sales Plan

* China figures are consolidated on the calendar year basis from Jul. to Dec.




+9251,478553Ordinary income

+8211,593772Operating income

+2,8259,3546,529Overseas

-4313,1893,621Domestic

Actual Results2nd HalfFYE 2013

Plan2nd HalfFYE 2014

Increase / Decrease

Net sales 10,149 12,544 +2,394


472 1,878 +1,406

Net income 791 1,212 +420

2nd Half : Consolidated Operating Plan（100 Million Yen）


772

1,593

Improvementof sales

volume &mixture and

others+271

Gain oncurrency

exchange+748 Cost

reduction +75

Increase ofSG&A



-58

+82.1 billion

FHI : +56SIA : +19

2nd Half : Analysis of Increase and Decrease inOperating Income Changes (consolidated)


2nd halfFYE March 2013

PlanOperating income

2nd halfFYE March 2014

Domestic : Deterioration of sales volume & mixtureOverseas : Improvement of sales volume & mixture

Decrease of fixed cost Increase of SG&A expensesand warranty claims

US$ : +738EURO : +28CA$ : +28CNY : +7Currency exchangeadjustment : -53




+0.644.844.2China

-0.839.139.9Australia

+0.136.035.9Canada

+5.0439.8434.8U.S.+18.9188.8169.9Domestic total


Previous planFYE 2014

Revised planFYE 2014

Increase /Decrease


Russia 15.4 15.4 -0.0Europe 34.6 31.9 -2.8

Others 32.5 33.4 +0.9

Total 807.3 829.3 +22.0

Full Year : Consolidated Automobile UnitsPrevious plan vs. Revised plan

* China figures are consolidated on the calendar year basis from Jan. to Dec.




+2202,9402,720Ordinary income

+3203,1002,780Operating income

+74217,30516,563Overseas

+586,4956,437Domestic

Previous planFYE 2014

Revised planFYE 2014

Increase /Decrease

Net sales 23,000 23,800 +800


3,111 3,331 +220

Net income 2,070 2,210 +140

Full Year : Consolidated Income StatementsPrevious Plan vs. Revised Plan



2,780

3,100

Improvementof sales

volume &mixture and

others+47

Gain oncurrency

exchange+286

Cost reduction+36

Increase ofSG&A

expensesand others

-49

+32.0 billion

FHI : +34SIA : +2

Full Year : Analysis of Increase and Decrease inOperating Income Changes Previous Plan vs. Revised Plan

Previous planOperating IncomeFYE March 2014

Revised planOperating IncomeFYE March 2014

Domestic : Improvement of sales volume & mixtureOverseas : Improvement of sales volume & mixture

Decrease of fixed cost Increase of SG&A expenses and warranty claims

US$ : +233EURO : +6CA$ : +1CNY : +7Currency exchangeadjustment : +39



Appendix (2)・Net sales / Operating income・Consolidated automobile units / OPM・Complete cars production / Retail units・FCF / Shareholders’ equity to total assets・Interest-bearing debt / D/E ratio

Appendix (2)Appendix (2)・・Net sales / Operating incomeNet sales / Operating income・・Consolidated automobile units / OPMConsolidated automobile units / OPM・・Complete cars production / Retail unitsComplete cars production / Retail units・・FCFFCF / Shareholders/ Shareholders’’ equity to total assetsequity to total assets・・InterestInterest--bearing debt / D/E ratiobearing debt / D/E ratio


3,7064,059

3,004

3,5463,744

4,877

4,2894,691

5,422 5,4695,8295,787

4,727827

107

811

696

470

301259

173161

9181

107161

0

1,000

2,000

3,000

4,000

5,000

6,000

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q0

100

200

300

400

500

600

700

800

900

1,000Net sales Operating income

FYE2013 FYE2014FYE2012FYE2011

¥98/$¥98/$¥89/$¥79/$¥77/$¥79/$¥82/$¥83/$ ¥99/$¥79/$¥81/$¥78/$¥83/$

Operating Income（100 million yen)

Net Sales(100 million yen)

Net Sales & Operating Income


208

166

183198

191201

166

148

118

202

169157

178

14.2%14.0%

2.6%

12.7%

8.7%

6.4%5.5%

4.0%3.3%

2.4%2.3%

3.6%4.4%

0

50

100

150

200

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q0%

3%

6%

9%

12%

15%

18%Consolidated automobile sales OPM


Consolidated Automobile Units & Operating Income Margin

OPMAutomobile sales

(1,000 cars)


182 178

207 210212

193197197

111

164

138

196196

136

162

213211195

177172167

191

158150147

156

0

50

100

150

200

Oct.-Dec.

Jan.-Mar.

Apr.-Jun.

Jul.-Sep.

Oct.-Dec.

Jan.-Mar.

Apr.-Jun.

Jul.-Sep.

Oct.-Dec.

Jan.-Mar.

Apr.-Jun.

Jul.-Sep.

Oct.-Dec.

2012 201320122011

Complete Cars Production & Retail Units

Units（1000 units)

Production Retail Units

* Production figures include Toyota 86.


397

871778

1,198

2,094

-42

953

283 22178

646

516

47

42.6%

41.2%

39.9%

37.7%

35.2%

34.7% 34.2%33.7%

33.3%33.7%34.2%34.7%

35.4%

-100

400

900

1,400

1,900

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q30%

35%

40%

45%

FCF Shareholders' equity to total assets


Free Cash Flows & Shareholders’ Equity to Total Assets

Shareholders’Equity to

Total Assets

FCF（100 million yen)


3,179 3,306

3,965 3,8663,688

3,410 3,381 3,301 3,2363,072 2,967 2,918

2,760

0.36

0.52

0.41

0.46

0.64

0.80

0.690.740.76

0.850.890.91

0.76

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4Interest bearing debt D/E ratio


Interest-Bearing Debt & D/E Ratio

Interest Bearing Debts

(100 million yen)D/E ratio


Forward-looking statements including projections and future strategies mentioned in this presentation are based on currently available information and assumptions and are subject to risks and uncertainties.Actual results may vary materially as a result of various factors including, without limitation, economic conditions, market demand and fluctuations in foreign exchange rates.Investors are asked not to rely solely on the information in this presentation when they make their final investment decisions.


02 15-14 fuji heavy-results_q3_2013-3

Automotive